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TMI Blog2022 (8) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... e of BOC INDIA LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI-I [ 2004 (1) TMI 246 - CESTAT, KOLKATA] wherein it was held that the said charges are not, in any way, related to or connected with the sale of the Gases. As such, the same cannot be said to be includible in the definition of the transaction value‟, as is appearing in the provisions of Section 4(3)(d). Additional Consideration for sale or not - HELD THAT:- The appellant is not charging CHC as a condition for sale of its gases. In fact, any customer can buy the gas without paying the CHC and return the cylinder within the time and in such a case no CHC will be payable by the customer to the appellant. If the customer delays returning the cylinder the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied period. The appellant had not included CHC in the value for calculating the central excise duty. 3. It is the case of the Revenue that the transaction value under section 4 (1) (a) of the Central Excise Act, 1944 [ the Act ] is the price at which goods are sold by the assessee for delivery at the time and place of removal, provided the buyer and seller of the goods are not related and price is sole consideration for sale. In other cases, the value shall be determined as per section 4 (1)(b) read with Rules. Rules 6 of the Valuation (Determination of Price of Excisable Goods) Rules 2000 reads as follows: Rule 6 Where the excisable goods are sold in the circumstances specified in clause (a) of sub-section (1) of Section of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that the similar issue came up before the Tribunal in the case of BOC India Limited vs. CCE, Chennai-I -2004 (175) ELT 236 (Tri. Kolkata) wherein it was held as under:- 3. We find that the above definition of transaction value refers to the price paid or payable for the excisable goods which the buyer is liable to pay in connection with the sale, and is an inclusive definition. There is no reference to the Rental Charges of the containers which the buyer may keep after the free period. Undisputedly, the appellants are manufacturers of Gases. Any buyer is free to receive Gases in their own Cylinder, in which case, the question of addition of any Rental Charge does not arise at all. We also take note of the fact that the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buy the gas without paying the CHC and return the cylinder within the time and in such a case no CHC will be payable by the customer to the appellant. If the customer delays returning the cylinder the appellant recovers CHC from the customer in the form of a penalty for delayed return of the cylinder. Central excise duty should be charged on the value of gas for delivery at time and place of removal i.e. at the factory gate. This price does not include the CHC. The CHC is charged only if, after delivery, the customer does not return the cylinder in time. Therefore, it cannot be called an additional consideration for sale but can only be a penalty for not returning the cylinder within time after the sale is completed. 8. Respectfully foll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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